Posts Tagged ‘bank owned property’
February 8th, 2010 | 
Author: Recently I got into a bit of a hassle with some REO per diem ridiculousness and delays. I thought it might help someone out there to share a bit of the details.
Fearing that the problems would escalate if we didn\’t proceed with the offer, we kept up our part of the offer on the cabin. Thank goodness for my experience in situations like this. From having dealt with situations like this with clients of mine before, I know that it is best to stay calm, keep up your part of the deal, and not to get worked up about the bank.
Getting out of paying for that per Diem is as simple as keeping on track and proving the delay was not of our doing. I stayed on top of the inspections making sure they were completed in a day period, and that my Realtor had the termite inspection done as well. Luckily since my client is purchasing this property with cash, we did not have any issues with the appraisal. It works a little differently if someone is buying a house with a loan from the bank, because you need to be in direct contact with the lender the whole time making sure an appraisal is completed on time.
If at all possible, you do not want anything going wrong in the last moments. Things typically will not always go completely the way you would like them to, but as long as you do everything you are required to do, they will turn out just fine. Most banks don\’t have the ability to know what is going on every step of the way. It always appears that they kind of just hang around waiting for something to happen.
It hasn\’t been uncommon for me in the last few years to witness banks doing something that is just out of sorts. You will rarely find a bank transaction that actually goes all the way through the process without a glitch. The key it to hire a bright, informed realtor to help you have a successful experience.
Author Info: Daniel Thuster has much experience shopping Big Bear, CA foreclosure deals plus Big Bear realty overall. Check out his other posts online.
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Buying a bank owned (REO) property is a much different process than a traditional listing and it is imperative that your Realtor know the difference. If your Realtor is not aware of the differences, they could not only cause you to lose the property, but also cost you money in the process. Let me explain.
Banks have complete control when it comes to a bank owned property. They make their own rules and follow no disclosure requirements. Typically they will have a potential client sign something called an addendum, which basically takes away the protections a buyer may have, and gives them sole power in the decision making.
They will give you a timeline you have to follow, or more likely then not there will be repercussions. They really unfair thing about it, is that they don\’t have to respond to anything or anybody until they are good and ready. For an example, I myself have a bank owned property being held in escrow at this moment, on which I was approved for well over a month ago. However, the bank didn\’t even open my escrow until almost three weeks into the thirty day stint.
It took a full three weeks before we received my contract and addendum. Not so lucky for us that when we first signed into this contract, it stated that we would be charged $100 per day per Diem for every day that went past the thirty-day period!
Then they did nothing on time to make it possible for us to make the deadline. As many of you know, the majority of short sales do not close successfully. This is usually due to the listing agent not knowing how to do them, but taking the listing anyways. If the listing agent doesn\’t put in all the work ahead of time, a short sale is a nightmare. REO\’s can be the same. In this case, the listing agent assured me that he had done all the footwork and the bank was ready to move.
Submitted by: Allen Fulton has much experience shopping Big Bear, CA foreclosures plus Big Bear, CA houses in general. Check out his other posts online.
